Mind CTI Ltd. (Nasdaq: MNDO; TASE: MNDO) has released an update on its auction rate securities (ARS) rating. The Yokne'am-based provider of VoIP billing and customer care solutions for tier 2 and tier 3 carriers worldwide, said that it had at the end of December $20.3 million invested in asset backed auction rate securities called "Mantoloking CDO" and $12.4 million in cash and cash equivalents.
Mind CTI noted, "While the liquidity of these investments has been significantly impacted by market conditions, we continue to receive interest payments every month. We are not able to predict whether conditions in the market for these securities will worsen or improve."
The company added, "We were recently advised that the Mantoloking CDO #564616AB6 has been downgraded to A3 by Moody's and on CreditWatch with negative implications. The security is still rated AAA by S&P. Obligations rated A by Moody's are considered upper-medium grade and are subject to low credit risk."
Mind CTI rose 5.6% in pre-trade today to $1.32, but fell 1% by mid-afternoon on the TASE. The company's founder, chairwoman and CEO is Monica Eisinger.
Published by Globes [online], Israel business news - www.globes-online.com - on April 10, 2008
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